Looking for broad exposure to the Small Cap Growth segment of the US equity market? You should consider the Vanguard S&P Small-Cap 600 Growth ETF (VIOG Quick QuoteVIOG - Free Report) , a passively managed exchange traded fund launched on September 9, 2010.

The fund is sponsored by Vanguard. It has amassed assets over $863.85 million, making it one of the average sized ETFs attempting to match the Small Cap Growth segment of the US equity market.

Why Small Cap Growth

There's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.

Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Further, growth stocks have a higher level of volatility associated with them. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.

Costs

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.1%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0.98%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Industrials sector -- about 22.3% of the portfolio. Information Technology and Financials round out the top three.

Looking at individual holdings, Sterling Infrastructure Inc (STRL) accounts for about 1.34% of total assets, followed by Spx Technologies Inc (SPXC) and Armstrong World Industries Inc (AWI).

The top 10 holdings account for about 7% of total assets under management.

Performance and Risk

VIOG seeks to match the performance of the S&P Small-Cap 600 Growth Index before fees and expenses. The S&P Small-Cap 600 Growth Index represents the growth companies of the S&P Small-Cap 600 Index.

The ETF has added roughly 4.39% so far this year and it's up approximately 2.93% in the last one year (as of 10/10/2025). In the past 52-week period, it has traded between $93.75 and $129.74.

The ETF has a beta of 1.10 and standard deviation of 20.66% for the trailing three-year period, making it a medium risk choice in the space. With about 351 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard S&P Small-Cap 600 Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VIOG is a good option for those seeking exposure to the Style Box - Small Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Russell 2000 Growth ETF (IWO) and the Vanguard Small-Cap Growth ETF (VBK) track a similar index. While iShares Russell 2000 Growth ETF has $13.09 billion in assets, Vanguard Small-Cap Growth ETF has $20.74 billion. IWO has an expense ratio of 0.24% and VBK charges 0.07%.

Bottom-Line

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.